Transcript:
Anton Siluanov: The Prime Minister chaired a meeting with members of the Government and the leading national banks. Meeting participants discussed the situation in the banking sector. Indeed, subsiding economic growth rates, reduced investment and slowing economic development indicators also negatively affect commercial banks.
In this connection, Russian bankers raised liquidity issues because the issue of liquidity has certainly impacted them at a time when the Central Bank was forced to sell currency and withdraw roubles. Thus, jointly with the Central Bank we have prepared a number of measures for providing commercial banks with these assets. First of all, we will reduce balances on the Central Bank accounts of the Federal Treasury. We have already noted that the total volume of balances will not exceed 200 billion roubles by the end of the year, although previously this volume used to fluctuate between 600 billion and one trillion roubles.
Also, we’ve agreed that the Government will soon adopt a decision allowing banks to pledge state-guaranteed loans at the Central Bank and to completely refinance these loans without discounts.
Question: For what period of time?
Anton Siluanov: This is very important for liquidity and for those commercial banks that finance state-guaranteed projects. Therefore these are high-priority projects. Commercial banks will have more opportunities to receive Central Bank funding.
In addition, I want to stress it once again, the Central Bank has announced that it is preparing to offer new long-term refinancing projects for a period of up to three years in exchange for effective investment projects, including those with or without guarantees, as well as high potential commercial projects. All this will make it possible to provide the banking system with additional resources, freeze the cost of loans and not to raise interest rates on the banking market.
Question: What can you say about requirements for projects without state guarantees? This is very risky.
Anton Siluanov: The Central Bank is now drafting a set of these project requirements for commercial banks. And who will evaluate these projects? It is possible to use independent consultancies to evaluate these projects, so the Central Bank can make decisions based on professional opinion.
Question: What is the amount of deposits being withdrawn from banks? In today’s issue, Vedomosti writes that Sberbank lost 60 or 70 billion roubles in withdrawn deposits in March only. And how much has been withdrawn from the entire banking system?
Anton Siluanov: You should ask our colleagues at the commercial banks.
Question: Mr Siluanov, are you discussing the issue of increasing the capitalisation of banks? For example, reduced dividend quotas could be stipulated for state banks, so that these profits would be…. In effect, it would be possible to pay less, rather than 25% profit tax in line with Russian accounting standards, and to spend the profits thus saved on additional bank capitalisation. Do you have such plans?
Anton Siluanov: In the past two years, banks, including commercial banks, posted sufficiently high profits. In fact, such profits hit an all-time high of about one trillion roubles annually. Today, commercial banks have reported rather impressive financial results. In the first quarter, Sberbank and others posted approximately the same profits as last year. Therefore we did not raise the issue of increasing their capitalisation or implementing emergency measures. The banks have enough funds at their disposal. We believe that there is no need to change our approach as stipulated by the budget during the estimates of revenue on state company dividends, including banks.
Question: And did anyone raise the issue of reducing the key Central Bank rate?
Anton Siluanov: No, we did not look at the key rate issue today. This is an element of monetary policy, and we discussed the banking industry today.
Question: Did you discuss Foreign Account Tax Compliance Act (FATCA) issues?
Anton Siluanov: Yes, we discussed FATCA issues. This week we’ll hold a G20 finance ministers’ meeting, and I hope to meet with the US Secretary of the Treasury and to discuss this issue with him.
Question: Has the United States said that it is withdrawing from the talks?
Anton Siluanov: You’ll ask all the questions after the meeting.
Question: Have you already allowed the banks to register on the website …
Anton Siluanov: We have drafted the relevant law allowing commercial banks to inform foreign tax agencies, in line with a list of countries being stipulated by the concerned tax policy agency. This draft law will be reviewed by the State Duma soon, and I hope that it will be approved as soon as possible. Thank you.
